Author: admin_gst

Whether purchases made by Embassies or UN are taxed or exempted?

Question 6 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Whether purchases made by Embassies or UN are taxed or exempted? Ans. Supplies to the Embassies or UN bodies will be taxed, which later on can be claimed as refund by them in terms of Section 54(2) of the CGST/SGST Act. The claim has to be filed in the manner prescribed under CGST/SGST Refund rules, before expiry of six months from the last day of the month in which such supply was received

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Whether principle of unjust enrichment will be applicable in refund?

Question 8 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. Whether principle of unjust enrichment will be applicable in refund? Ans. The principle of unjust enrichment would be applicable in all cases of refund except in the following cases: – i. Refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies ii. Unutilized input tax credit in respect of (i) zero rated su

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Suppose a taxable person has paid IGST/ CGST/SGST mistakenly as an Interstate/intrastate supply, but the nature of which is subsequently clarified. Can the CGST/SGST be adjusted against wrongly paid IGST or vice versa?

Question 5 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Suppose a taxable person has paid IGST/ CGST/SGST mistakenly as an Interstate/intrastate supply, but the nature of which is subsequently clarified. Can the CGST/SGST be adjusted against wrongly paid IGST or vice versa? Ans. The taxable person cannot adjust CGST/SGST or IGST with the wrongly paid IGST or CGST/SGST but he is entitled to refund of the tax so paid wrongly – Sec.77 of the CGST/S

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What is refund?

Question 1 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 14. Refunds Q 1. What is refund? Ans. Refund has been discussed in section 54 of the CGST/SGST Act. Refund includes (a) any balance amount in the electronic cash ledger so claimed in the returns, (b) any unutilized input tax credit in respect of (i) zero rated supplies made without payment of tax or, (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the

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Can unutilized Input tax credit be allowed as refund?

Question 2 – Draft-Bills-Reports – Refunds – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Can unutilized Input tax credit be allowed as refund? Ans. Unutilized input tax credit can be allowed as refund in accordance with the provisions of sub-section (3) of section 54 in the following situations: – (i) Zero rated supplies made without payment of tax; (ii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on output supplies (othe

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What are the obligations of the taxable person when he receives the notice of audit?

Question 17 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. What are the obligations of the taxable person when he receives the notice of audit? Ans. The taxable person is required to: a) facilitate the verification of accounts/records available or requisitioned by the authorities, b) provide such information as the authorities may require for the conduct of the audit, and c) render assistance for timely completion of the audit. – St

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Who will do the special audit?

Who will do the special audit? – Question 21 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 21 – Q 21. Who will do the special audit? Ans. A Charter

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Who can conduct audit of taxpayers?

Question 13 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. Who can conduct audit of taxpayers? Ans. There are three types of audit prescribed in the GST Act(s) as explained below: (a) Audit by Chartered Accountant or a Cost Accountant: Every registered person whose turnover exceeds the prescribed limit, shall get his accounts audited by a chartered accountant or a cost accountant. (Section 35(5) of the CGST/SGST Act) (b) Audit by De

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What is meant by commencement of audit?

Question 16 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. What is meant by commencement of audit? Ans. The term commencement of audit is important because audit has to be completed within a given time frame in reference to this date of commencement. Commencement of audit means the later of the following: a) the date on which the records/accounts called for by the audit authorities are made available to them, or b) the actual instit

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What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?

Question 9 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration? Ans. Section 63 of CGST/SGST Act provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax periods. However, such an order must be passed within a period of five years from the

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Under what circumstances can a tax officer initiate Summary Assessment?

Question 10 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Under what circumstances can a tax officer initiate Summary Assessment? Ans. As per section 64 of CGST/SGST Act, Summary Assessments can be initiated to protect the interest of revenue when: a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and b) the proper officer believes that delay in passing an assessment order w

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Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?

Question 11 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order? Ans. A taxable person against whom a summary assessment order has been passed can apply for its withdrawal to the jurisdictional Additional/Joint Commissioner within thirty days of the date of receipt of the order. If the said officer finds the order erroneo

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